Fed's Barkin: Fundamental challenge for US growth is how to increase workforce

Given the combination of accommodative monetary policy, excess savings and fiscal spending, the US economy can return to health in short order, Richmond Federal Reserve President Thomas Barkin said on Friday, as reported by Reuters.

Additional takeaways

"Opportunity exists for small towns post-COVID but will be a competition to develop amenities, schools, broadband."

"Watching enrollment drop at community colleges intently, given the need for a flow of workers to jobs like nursing, truck driving."

"The imbalance between housing demand and supply is likely a multi-year problem."

"The fundamental challenge for US growth right now is how to increase the workforce."

"Raising labor force participation is on the ground battle that will hinge on social supports, training, wages and other incentives to attract workers."

"The infrastructure program could face a constrained supply of construction, manufacturing workers."

Market reaction

The greenback remains on the back foot following these remarks and the US Dollar Index was last seen losing 0.36% on the day at 90.27.